Comments for Kenya: Global Credit Crisis Going Local at http://www.ratio-magazine.com , comment 0 to 1 out of 1 comments http://www.ratio-magazine.com Fri, 12 Mar 2010 16:38:17 +0100 FeedCreator 1.7.2 http://www.ratio-magazine.com/20090211418/Kenya/KenyaGlobal-Credit-Crisis-Going-Local.html#pc_16 Interesting article though a little confused in parts. The debate about credit crunch and its impact on Kenya is I think still on-going. Obvious pointers will be remittances, fx rates and NSE volumes. According to CBK, remittances rose throughout 2008, but we’ll probably know for sure in the next 6 months. FX rates are looking interesting with pound nearing Ksh100 but $ going the other way-arbitrage? NSE volumes, most foreigners came in and left during Safcom’s IPO but otherwise their proportion is broadly similar to the pre-Safcom situation. Not sure I follow your thought process on foreigners leaving balances with banks until fx rates are more favorable… On npls and the banking sector. Equity just took a Ksh1bn loan loss provision hit and probably could and should have taking a greater hit. However, note it also paid out a higher DPS and spilt its shares. Not the actions of a bank fearing liquid and or capitalisation issues. I expect KCB and BBK to take circa Ksh2bn of loan loss provisioning. I think our economy’s problems are mainly internally generated. Thus, the economy will suffer from these problems not being fixed fast enough with the foreign factor being an added problem. - mainat Mon, 16 Feb 2009 14:48:14 +0100